Problem 15- 19 Determining and interpreting flexible budget variances

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Problem 15- 19 Determining and interpreting flexible budget variances

Use the standard price and cost data supplied in Problem 15- 18. Assume that Todhunter actually produced and sold 31,000 books. The actual sales price and costs incurred follow.

Actual price and variable costs:
Sales price	35.00
Materials	9.20
Labor	4.40
Overhead	6.35
General, selling, and administrative	7.00
Actual fixed costs:
Manufacturing	120,000
General, selling, and administrative	60,000
Data from P15 - 18
Standard price and variable costs
Sales price	36.00
Materials	9.00
Labor	4.50
Overhead	6.30
General, selling, and administrative	7.20
Planned fixed costs:
Manufacturing	135,000
General, selling, and administrative	54,000

Required
a. Determine the flexible budget variances.
b. Indicate whether each variance is favorable (F) or unfavorable (U).
c. Identify the management position responsible for each variance. Explain what could have
caused the variance.